ACCOUNTING INFORMATION
SYSTEMS 14TH EDITION BY
MARSHALL ROMNEY AND PAUL
STEINBART 2026 ALL CHAPTERS
TEST PREP VERIFIED ANSWERS
◉ Goal Conflict.
Answer: When a subsystem's goals are inconsistent with the goals of
another subsystem or the system as a whole.
◉ Goal Congruence.
Answer: When a subsystem achieves its goals while contributing to the
organization's overall goal.
◉ Data.
Answer: Facts that are collected, recorded, stored, and processed by a
system.
◉ Information.
Answer: Data that have been organized and processed to provide
meaning and improve decision-making.
◉ Information Overload.
,Answer: Exceeding the amount of information a human mind can absorb
and process, resulting in a decline in decision-making quality and an
increase in the cost of providing information
◉ Information Technology (IT).
Answer: The computers and other electronic devices used to store,
retrieve, transmit, and manipulate data.
◉ Value of Information.
Answer: The benefit provided by information less the cost of producing
it.
◉ Business Process.
Answer: A set of related, coordinated, and structured activities and tasks,
preformed by a person, a computer, or a machine that help accomplish a
specific organizational goal.
◉ Transaction.
Answer: An agreement between two entities to exchange goods or
services, such as selling inventory in exchange for cash; any other even
that can be measured in economic terms by an organization.
◉ Transaction Processing.
Answer: Process of capturing transaction data, processing it, storing it
for later use, and producing information output, such as a managerial
report or a financial statement
,◉ Give-Get Exchange.
Answer: Transactions that happen a great many times, such as giving up
cash to get inventory from a supplier and giving employees a paycheck
in exchange for their labor.
◉ Business Processes or Transaction Cycles.
Answer: The major give-get exchanges that occur frequently in most
companies.
◉ Revenue Cycle.
Answer: Activities associated with selling goods and services in
exchange for cash or a future promise to receive cash.
◉ Expenditure Cycle.
Answer: Activities associated with purchasing inventory for resale or
raw materials in exchange for cash or a future promise to pay cash.
◉ Production or Conversion Cycle.
Answer: Activities associated with using labor, raw materials and
equipment to produce finished goods.
◉ Human Resources/Payroll Cycle.
Answer: Activities associated with hiring, training, compensating,
evaluating, promoting, and terminating employees.
, ◉ Financing Cycle.
Answer: Activities associated with raising money by selling shares in
the company to investors and borrowing money as well as paying
dividends and interest.
◉ General Ledger and Reporting System.
Answer: Information-processing operations involved in updating the
general ledger and preparing reports for both management and external
parties.
◉ Accounting Information System.
Answer: A system that collects, records, stores, and processes data to
produce information for decision makers. It includes people, procedures
and instructions, data, software, information technology infrastructure,
and internal controls and security measures.
◉ AIS Processes Data to Produce Information for Decision Makers.
Answer: Data > AIS > Information > AIS/User > Decision
◉ Predictive Analysis.
Answer: The use of data warehouses and complex algorithms to forecast
future events, based on historical trends and calculated probabilities.
◉ Factors influencing Design of the AIS.
SYSTEMS 14TH EDITION BY
MARSHALL ROMNEY AND PAUL
STEINBART 2026 ALL CHAPTERS
TEST PREP VERIFIED ANSWERS
◉ Goal Conflict.
Answer: When a subsystem's goals are inconsistent with the goals of
another subsystem or the system as a whole.
◉ Goal Congruence.
Answer: When a subsystem achieves its goals while contributing to the
organization's overall goal.
◉ Data.
Answer: Facts that are collected, recorded, stored, and processed by a
system.
◉ Information.
Answer: Data that have been organized and processed to provide
meaning and improve decision-making.
◉ Information Overload.
,Answer: Exceeding the amount of information a human mind can absorb
and process, resulting in a decline in decision-making quality and an
increase in the cost of providing information
◉ Information Technology (IT).
Answer: The computers and other electronic devices used to store,
retrieve, transmit, and manipulate data.
◉ Value of Information.
Answer: The benefit provided by information less the cost of producing
it.
◉ Business Process.
Answer: A set of related, coordinated, and structured activities and tasks,
preformed by a person, a computer, or a machine that help accomplish a
specific organizational goal.
◉ Transaction.
Answer: An agreement between two entities to exchange goods or
services, such as selling inventory in exchange for cash; any other even
that can be measured in economic terms by an organization.
◉ Transaction Processing.
Answer: Process of capturing transaction data, processing it, storing it
for later use, and producing information output, such as a managerial
report or a financial statement
,◉ Give-Get Exchange.
Answer: Transactions that happen a great many times, such as giving up
cash to get inventory from a supplier and giving employees a paycheck
in exchange for their labor.
◉ Business Processes or Transaction Cycles.
Answer: The major give-get exchanges that occur frequently in most
companies.
◉ Revenue Cycle.
Answer: Activities associated with selling goods and services in
exchange for cash or a future promise to receive cash.
◉ Expenditure Cycle.
Answer: Activities associated with purchasing inventory for resale or
raw materials in exchange for cash or a future promise to pay cash.
◉ Production or Conversion Cycle.
Answer: Activities associated with using labor, raw materials and
equipment to produce finished goods.
◉ Human Resources/Payroll Cycle.
Answer: Activities associated with hiring, training, compensating,
evaluating, promoting, and terminating employees.
, ◉ Financing Cycle.
Answer: Activities associated with raising money by selling shares in
the company to investors and borrowing money as well as paying
dividends and interest.
◉ General Ledger and Reporting System.
Answer: Information-processing operations involved in updating the
general ledger and preparing reports for both management and external
parties.
◉ Accounting Information System.
Answer: A system that collects, records, stores, and processes data to
produce information for decision makers. It includes people, procedures
and instructions, data, software, information technology infrastructure,
and internal controls and security measures.
◉ AIS Processes Data to Produce Information for Decision Makers.
Answer: Data > AIS > Information > AIS/User > Decision
◉ Predictive Analysis.
Answer: The use of data warehouses and complex algorithms to forecast
future events, based on historical trends and calculated probabilities.
◉ Factors influencing Design of the AIS.
